Investors should be looking to upweight bonds in their portfolios for a medium-to-long term outlook, argues Pendal’s head of government bond strategies TIM HEXT in this fast podcast.

Excerpt:

"We're now seeing 10-year bond yields get back towards 2.5%.

"I think that's important because most asset allocators are underweight bonds.

"Bonds of course are still a defensive instrument. And if we did see a recession or a sharp downturn, they will perform that task.

"The beauty of it now is that if you own those bonds up around 2.5% your downside on capital is going to be more limited.

"It's not to say that the surge we're going to potentially see this year in services inflation and the economy itself, won't see rates move higher than there.

"All I'm trying to do is make the point on a medium-to-long term basis at 2.5% I can sit here and tell people that bonds are no longer expensive.

"They may not be cheap, but at least you should be looking to upweight them in your portfolio for a medium-to-long term outlook."

Find out more about Pendal’s fixed interest strategies at https://pend.al/fixedinterest.

Pendal is an independent, global asset manager. Find out more at www.pendalgroup.com.

Investors should be looking to upweight bonds in their portfolios for a medium-to-long term outlook, argues Pendal&rsquo;s head of government bond strategies TIM HEXT in this fast podcast.
Excerpt:
"We're now seeing 10-year bond yields get back towards 2.5%.
"I think that's important because most asset allocators are underweight bonds.
"Bonds of course are still a defensive instrument. And if we did see a recession or a sharp downturn, they will perform that task.
"The beauty of it now is that if you own those bonds up around 2.5% your downside on capital is going to be more limited.
"It's not to say that the surge we're going to potentially see this year in services inflation and the economy itself, won't see rates move higher than there.
"All I'm trying to do is make the point on a medium-to-long term basis at 2.5% I can sit here and tell people that bonds are no longer expensive.
"They may not be cheap, but at least you should be looking to upweight them in your portfolio for a medium-to-long term outlook."
<a href="https://www.pendalgroup.com/products/asset-class/australian-fixed-interest-funds">Find out more about Pendal&rsquo;s fixed interest strategies at https://pend.al/fixedinterest.</a>
Pendal is an independent, global asset manager. <a href="https://www.pendalgroup.com/">Find out more at www.pendalgroup.com.</a>

Perpetual Group is an international asset manager including boutiques such as Perpetual, Pendal, Barrow Hanley, Regnan and Trillium. Each week our portfolio managers share the most interesting things they've heard from CEOs, industry leaders and analysts.

Perpetual Group is an international asset manager including boutiques such as Perpetual, Pendal, Barrow Hanley, Regnan and Trillium. Each week our portfolio managers share the most interesting things they've heard from CEOs, industry leaders and analysts.

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